Council of Ministers of Bosnia and Herzegovina Holds Its 85th Session

BIH INSTITUTIONS BUDGET EXECUTION REPORT ADOPTED 

The Council of Ministers of BIH adopted a Report on Budget Execution of the BIH Institutions for January-September 2016, which indicates that total realised revenues, receivables and financing available to the BIH Institutions amounted to KM 749,437,694 or 79 per cent in relation to the funds planned for the this year, of which sum, KM 699,680,905 were the revenues collected, while financing and other receivables were KM 49,756,789.

The revenue structure is predominated by the Single Treasury Account funds of the Indirect Taxation Administration for financing of the BIH Institutions (KM 561,775,888), non-tax revenues (KM 126,415,350), current endorsements from aboard (KM 10,866,579), and transfers from other levels of authorities.

Total expenditures of the BIH Institutions Budget for 1-3Q 2016 amount KM 632,950,641 or 67 per cent in relation to the 2015 Budget, i.e. 51 per cent in relation to the corrected one, which included additional special purpose funds.

The BIH Institutions continued with their austerity measures, featured by decease of phone and entertainment costs, while the revenues of KM 761,789 were made primarily from the sales f budget users’ motor vehicles because of a decrease of their car pool.

Obligations due based on the BIH foreign debt were regularly serviced in an amount of KM477.56 million.

 

TO REGULATE ISSUE OF SALARIES SYSTEMATICALLY

 

The Council of Ministers of BIH considered a Draft Law on Amendments and Supplements to the Law on Salaries and Emoluments in the Institutions of Bosnia and Herzegovina, and concluded that suggestions presented to the session in a written form will be sent to the Ministry of Finance and Treasury by the mid-next week, in order to allow the Council of Ministers of BIH to send the Draft Law to the BIH Parliamentarian Assembly to the end of this year.

The aim is to arrive at a legislative text to be fully harmonised with the Policy of Salaries and Emoluments in the BIH Incautions, conclusion of both the House of Representatives and House of Peoples of the BIH Parliamentarian Assembly and recommendations of the Audit Office.

The Law, together with new legal solutions on civil service, labour and conflict of interests in the BIH Institutions, dealt with the competent institutions, is a part of the reform package to regulate this area more rationally and systematically.

 

FUNDS FOR CONSTRUCTION OF TWO SECTIONS OF MOTORWAY ON CVORRIDOR V c

 

The Council of Ministers of BIH defined a Proposal Loan Contract for realisation of the Corridor V c 2 Project – Continuation between Bosnia and Herzegovina and the European Bank for Reconstruction and Development, worth EUR 76 million with 15 years term, include four-year grace period.

The funds are intended for construction of a motorway section between Donja Gračanica and Klepče – tunnel Pečuj, long 5.8 km, and 10.4 km long motorway at Svilaj-Odžak section; both sections are to be constructed according with international standards.

The Project is the continuation of the Corridor V c Project, financed from EBRD loans worth EUR 80 million.

The Proposal Contract with Basics for its conclusion will be provided to the BIH Presidency, and the Minister of Finance and Treasury was proposed as the BIH signatory.

EUR 10 MIL. FOR RECONSTRUCITION OF ROAD AND RAILWAY ACESS TO BRČKO PORT

 

The Council of Ministers of BIH defined a Proposal Loan Contract between Bosnia and Herzegovina and the European Bank for Reconstruction and Development for reconstruction of road and railway access to the Brčko Port and warehouse facilities, worth EUR 10 million.

The Project is expected to be finalised by the end 2019, where a volume of transhipping in the Brčko Port would be increased for 25 per cent, which would positively affect the economic development of the region.

The Proposal Contract with Basics for its conclusion will be provided to the BIH Presidency, and the Minister of Finance and Treasury was proposed for the BIH signatory.

 

ADDITIONAL EUR 10 MIL. FOR HOSPITALS RECONSTRUCTION PROJECT IN REPUBLIKA SRPSKA

 

The Council of Ministers endorsed an Initiative of the Ministry of Finance and Treasury and appointed a negotiating delegation for conclusion of a Finance Contract between Bosnia and Herzegovina and the European Investment Bank (EIB) aimed for the continuation of hospitals reconstruction project in Republika Srpska.

Under the Contract the additional EUR 15 million would be provided for financing of construction and equipping of a new technical section for the central medical ward and Northern wing of the University-Hospital Centre Banja Luka, including the procurement and installation of IT equipment.

The of the loan allocated to Republika Srpska is 25 years, including four year grace period.

An earlier EUR 100 million EBRD loan, secured for project of construction if a new hospital in Bijeljina and reconstruction and furbishing of the Hospital Centre in Banja Luka, was successfully implemented in Republika Srpska.

 

EUR 493.31 MILLION ODA SUPPORT TO BIH

 

The Council of Ministers if BUH adopted a Report of the Ministry of Finance and Treasury “Donors’ Activity Review 2015”, which provides a comprehensive review of projects and programmes in 2015, financed by Donor Coordination Forum (DFC) members, as well as an analysis of the state of play and reforms in 10 sectors in BIH.

Total EUR 495.31   million was allocated from the Official Development Aid (ODA) in 2015, of which EUR 177.68 in form of grants, EUR 317.63 million in form of loans.

The major creditors were the European Bank for Reconstruction and development (EBRD), World Bank (WB), European Investment Bank (EIB), and the International Financial Corporation (IFC), while the European Union, United States of America/USAID. Sweden(Sida, Switzerland, UNDP, Germany and Japan (JICA) provided the most of grants.

The major portion of the international development aid in 2015 was allocated to the competition and innovations (39 per cent), transport (23 per cent) and environment climate change policy (16 per cent) sectors.

 

CoMBIH: PREPARATION OF ANSWERS TO EU QUESTIONNAIRE IS PRIORITY TASK

 

The Council of Ministers of BIH took note of the “Methodology of preparing  answers to the European Commission questionnaire” and “Guidelines for drafting answers to the European Commission questionnaire required by it for preparing an opinion on the European Union membership application”, both developed by the Directorate for European Integrations.

The aim is to create a foundation for all-level institutions to prepare successfully their answers to questions of the European Commission questionnaire for BIH, and this would be a priority task in the next six months.

 

TO IMPLEMENT RECCOMENDATIONS WITHIN DEADLINES

 

The Council of Ministers of BIH adopted Information of the Ministry of Security on implementation of obligations contained in the Action Plan of Bosnia and Herzegovina for removal of deficiencies in anti-money-laundering regime, with a view to harmonised the AML/CFT system with standards and recommendations of the Financial Action Task Force (FATF).

The session concluded that a considerable number of obligations as been completed, while competent institutions at the State, Entity and Brčko District levels have intensified their activities  for finalisation of the remaining obligations, so that BIH might realise its Action Plan in compliance with deadlines, by January 2017.

The progress of BIG in the area was recognised by MONEYVAL, when at tis plenary session in Strasburg, on December 7, decided to take BIH off the Moneyval list of countries having deficiencies in their countering financing terrorism, legal frameworks.

The Council of Ministers of urged the institutions failing to implement certain activities to meet with their obligations from the Action Plan of Bosnia and Herzegovina for removal of deficiencies in anti-money-laundering regime, with a view to harmonised the AML/CFT system with standards and recommendations of the Financial Action Task Force (FATF). The remaining obligations refer to amendments of the Criminal Code and development of regulations on investment companies and securities, as well setting-up a web application making available information of the Registry of Associations and Foundations in BIH.

The Ministry of Security will provide the Report to the Entity and Brčko District of BIH Governments.

 

GRANT TO NON-PROFIT ORGANISATIONS FOR PROJECTS OF FOSTERING TIES WITH DIASPORA

 

The Council of Ministers of BIH took a decision, upon a proposal of the Ministry for Human Rights and Refugees, to allocate a grant worth KM 41,741.40 to nine non-profit organisations for strengthening of ties with the emigration.

The funds are intended for projects strengthening of cultural traditional, sports and youth cooperation with the diaspora.

The originally planned sum of the grant was KM 50,000.00, and for the remaining KM 8,258.60 an open call will be announced, in accordance with a decision on criteria for allocation of grant funds to non-profit organisation for their activities towards the emigration.

 

ANTI-CORRUPTION CONVENTIONS IN BIH

 

The Council of Ministers adopted Information of the Ministry of Security on the beginning of the second round of review of implementation of the United Nations Anti-Corruption Convention in Bosnia and Herzegovina.

Over the past period of time, the first round of self-assessment was successfully realised as to the UN Anti-Corruption Convention implementation in BIH, and the second,  five-year round is to start soon; Bosnia and Herzegovina’s activities will be monitored in the first year of implementation.

The Ministry of security and the Agency for Prevention of Corruption and Coordination of Fight against Corruption will finalise together relevant reports on the Convention implementation for two chapters relating to Bosnia and Herzegovina.

The subject chapters are the Preventive Measures, to be reported by the Agency for Prevention of Corruption and Coordination of Fight against Corruption, and Recovery of Goods in Connection to Measures against Bribe, the report on which will be developed by the Ministry of Security.

 

COMPREHENSIVE PLAN FOR MORE EFFECTIVE TELECOMMUNICATIONS SOLUTIONS IN BIH INSTITUTIONS

 

The Council of Ministers of BIH, upon a proposal of the ministry of Communications and Transport, took a Decision on designating an expert team for telecommunications solutions in the Institutions of Bosnia and Herzegovina.

The team shall among other things, develop a comprehensive plan of telecommunication solutions to define clearly economic and effective solutions for transfer of data in the BIH Institutions, and will draft a comprehensive analysis of the current situation, needs and feasibility and rationality of the currently available telecommunications solutions in the Institutions of Bosnia and Herzegovina.

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